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Header: Begin your memo with the four standard memo heads (Date, To, From, Subject).
In the first paragraph of the body, start off with the good news. Memos do not begin with
greetings or salutations. Explain what factors could have contributed to this new development
(i.e. increased sales, raising stock price, etc.) and why the decision was made to reward
employees with the surplus funds.
The second paragraph is where you explain the new process that the employees can expect.
Outline the way that reviews will be handled, and by whom. Feel free to be creative (yet
somewhat realistic) when outlining how the performance scores will translate into bonuses (i.e.
tier system, seniority, contribution value).
In the third paragraph, be sure to validate any anticipated concerns employees may have about
this adjustment. Explain the greater benefit in the long-term this decision provides and conclude
your memo by indicating how the reader may contact you if he/she has any questions. In
general, this section should be “short & sweet,” making sure that the employees know what is
expected of them.